Investing in rental property is a great way to bring in a little extra money each month, while building equity on two houses simultaneously. Knowing how to invest in rental homes is a little different from knowing how to buy a house for your primary residence, but with a little work, it can be a rewarding experience.
Choosing a real estate agent is one of the first things to do when investing in rental property. Finding a good real estate agent will make the entire buying process go smoothly. From finding houses in the most profitable neighborhoods to helping with the sale paperwork, real estate agents are invaluable resources of information and assistance.
The next step is learning how to determine a good rental property. While you may fit more tenants into multi-family homes, single-family homes tend to attract families and established couples, who may be in a better financial position and pay rent more regularly. When looking for your rental property, first look into desirable neighborhoods. The more amenities and potential jobs there are in the area, the more tenants you are going to attract. Be sure to check out local crime rates to ensure that you are investing in a safe area.
Once you have determined appropriate neighborhoods, it is time to start looking at available houses. Try to keep property taxes in mind when determining whether rents will cover the cost of the house or not, and look for properties that have been well-maintained. The less time you have to spend fixing up a house to make it habitable, the more time tenants have to move in and pay rents.
Investing in rental property can seem challenging, but with the right attitude and help from a real estate agent, you will be well on your way to home renting success. For more information see this.
